- Title
- Trade liberalisation and poverty alleviation in South Africa
- Creator
- Gundu, Tafadzwa Amanda
- Date
- 2013
- Type
- Thesis
- Type
- Masters
- Type
- M Com
- Identifier
- vital:11480
- Identifier
- http://hdl.handle.net/10353/d1015283
- Description
- The study attempts to address, from amongst the key issues in the current debate on economic development: the effect of trade liberalization on poverty. The relationship between trade liberalization and poverty levels is investigated in both the long run and the short run for South Africa. To measure trade liberalization, trade openness is used as the standard index. Foreign Direct Investment (FDI) measures financial openness while taxation is a measure of public intervention in the country. Consumption per capita is a proxy for poverty and Real Gross Domestic Product (RGDP) controlled for economic growth. Applying the Johansen Co-integration Techniques and Error Correction Method, empirical results suggest that trade liberalization has a cumulative effect on poverty reduction in the long-run. Lower poverty level is associated with low taxation and high foreign direct investment, particularly in the short run, in South Africa. Therefore, it is recommended that the government needs to design and pursue active development strategies to benefit from openness. There is also a need to enhance the tax revenues of the state through better collection of revenues, and administrative reforms rather than expenditure cut backs, which can reduce the effectiveness of the public sector. The government needs to strengthen allocation of funds to social sectors so as to bring the issue of poverty reduction to the central stage of economic policy making.
- Format
- 134 leaves
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management & Commerce
- Language
- English
- Rights
- University of Fort Hare
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